NASDAQ$EA

Electronic Arts Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

EA's Q3 2022 financial results were announced, revealing the largest quarter in the company's history for net bookings, profitability, and cash generation.

Electronic Arts reported a strong Q3 FY22, marked by significant growth in net bookings, profitability, and cash generation. The company's network expanded to over 540 million unique active accounts, with increased player engagement across its franchises.

  • Net bookings for the trailing twelve months increased by 22% year-over-year, reaching $7.254 billion.
  • The EA player network grew to over 540 million unique active accounts.
  • Apex Legends monthly active players increased by more than 30% year-over-year.
  • Net cash provided by operating activities was a record $1.534 billion for the quarter.

Headline financials

Total Revenue

$1.79B

Previous: $1.67B+6.9%
EPS (adj)

$3.20

Previous: $3.06+4.6%
Capital Expenditures

-$135M

Previous: -$93M-45.2%
Free Cash Flow

-$69M

Previous: $118M-158.5%
Net Income

$66M

Previous: $211M-68.7%
Operating Income

$102M

Previous: $251M-59.4%
Gross Profit

$1.16B

Previous: $1.07B+8.0%
Cash & Equivalents

$2.67B

Previous: $4.77B-44.0%
Total Assets

$13.9B

Previous: $12.4B+12.2%
Stock-Based Comp

$129M

Previous: $111M+16.2%

Revenue & EPS history

EA · Revenue · Quarterly

$1.79B

Q3 2022+6.9%vs Q3 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

EA · $1.79B total across 3 segments · Q3 2022

  • Live Services & Other
    $1.17B+23.3%
  • Full Game Downloads
    $400M+15.3%
  • Packaged Goods
    $216M-42.4%

Forward guidance

For the quarter ending March 31, 2022, EA anticipates net revenue of approximately $1.759 billion, net income of around $130 million, and diluted earnings per share of about $0.46.

Tailwinds

  • Net revenue is expected to be approximately $1.759 billion.
  • Change in deferred net revenue (online-enabled games) is expected to be approximately $2 million.
  • Net income is expected to be approximately $130 million.
  • Diluted earnings per share is expected to be approximately $0.46.
  • Net bookings is expected to be approximately $1.761 billion.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+1.1%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.8%

Avg return

30 days after

53%

35 / 66 earnings

Positive

+18.0%

Q4 2014

Best reaction

-9.5%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-2.1%-0.7%+0.7%
Q3 2026-1.2%-0.3%-1.7%
Q2 2026-0.1%-0.2%+0.9%
Q1 2026+0.0%+3.6%+9.5%
Q4 2025+0.6%-3.4%-3.2%
Q3 2025+7.6%+8.9%+15.5%
Q2 2025+3.4%+4.9%+13.1%
Q1 2025+2.1%+0.7%+1.6%
Q4 2024-4.1%-2.6%+5.2%
Q3 2024-0.7%-1.4%+0.6%
Q2 2024+3.6%+4.4%+11.3%
Q1 2024-7.4%-10.1%-12.0%
Q4 2023-0.8%-0.2%+1.1%
Q3 2023-9.5%-11.7%-12.9%
Q2 2023+2.1%+3.0%+4.5%
Q1 2023+1.8%+1.3%-2.4%
Q4 2022+7.5%+11.5%+21.2%
Q3 2022+3.4%+3.8%-3.6%
Q2 2022+1.6%-1.4%-10.6%
Q1 2022-2.1%-2.6%+4.9%
Q4 2021-0.7%-1.4%+3.6%
Q3 2021-3.5%-3.2%-10.0%
Q2 2021-4.9%-5.1%+2.7%
Q1 2021+4.2%+7.6%+3.6%
Q4 2020-1.3%-0.2%+0.3%
Q3 2020-3.8%-4.6%-9.7%
Q2 2020+0.0%-1.5%+4.2%
Q1 2020+4.1%+4.5%+4.7%
Q4 2019+0.1%+0.1%+2.8%
Q3 2019-9.3%+10.4%+12.4%
Q2 2019-0.2%+1.4%-5.3%
Q1 2019-8.7%-12.1%-12.0%
Q4 2018+5.7%+7.2%+10.5%
Q3 2018+7.9%+5.8%+3.8%
Q2 2018-2.6%-3.7%-9.6%
Q1 2018+0.2%-0.9%-0.9%
Q4 2017+13.0%+14.0%+19.4%
Q3 2017-1.0%-3.1%+3.8%
Q2 2017+0.8%+2.2%-3.7%
Q1 2017+2.6%+4.2%+6.7%
Q4 2016+13.7%
Q3 2016-7.1%
Q2 2016-6.1%
Q1 2016-0.9%
Q4 2015+2.7%
Q3 2015+10.4%
Q2 2015+5.5%
Q1 2015-6.2%
Q4 2014+18.0%
Q3 2014+3.1%
Q2 2014+4.7%
Q1 2014+5.8%
Q4 2013+17.9%
Q3 2013+5.2%
Q2 2013+3.7%
Q1 2013+4.0%
Q4 2012+1.1%
Q3 2012-4.0%
Q2 2012-6.0%
Q1 2012+2.5%
Q4 2011+1.7%
Q3 2011+0.4%
Q2 2011+0.0%
Q1 2011-2.2%
Q4 2010-3.8%
Q1 2010-1.8%

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